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TotalEnergies acquires stake in Bujagali Power Dam

Peter 30th Jul, 2024 Energy Business Edge Reporter
TotalEnergies acquires stake in Bujagali Power Dam

The 250 MW Bujagali Hydro Power Dam is one of Uganda's landmark energy projects.


French energy giant TotalEnergies has signed an agreement with Scatec, a Norwegian renewable energy company, to acquire 100% of its subsidiary, SN Power.

Consequently, TotalEnergies will acquire a 28.3% stake in the 250MW Bujagali hydropower plant, which contributes more than 25% of Uganda’s peak electricity demand.

Over the last 15 years, TotalEnergies has been a key player in Uganda's non-renewable energy industry, primarily through its participation in the development of oil and gas resources. The company, together with its partners, has been involved in oil exploration and is part of the consortium developing the Kingfisher oil field and the Tilenga project in the Albertine region.

  • Additionally, TotalEnergies is a key player in the East African Crude Oil Pipeline (EACOP) project, intended to transport crude oil from Uganda’s oil fields to the port of Tanga in Tanzania.

However, the company is currently implementing an ambitious diversification drive into renewable energy projects globally, reflecting a broader trend in the energy industry towards more sustainable and diversified energy sources.

Patrick Pouyanné, the Chairman and CEO of TotalEnergies, said in a press release today that they were “delighted” to join the energy transition agenda in Uganda by becoming a player in hydro power.

  • “This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent's energy transition by bringing electricity to the people of African countries,” he said.

“In particular, we are delighted to be able to become a player in hydro power in Uganda, a country where we are also developing a major oil project. This is another example of TotalEnergies’ ability to implement its multi-energy strategy in oil-producing countries to support them in their energy transition.”

TotalEnergies is also exploring the development of solar mini-grids in Uganda, which can provide power to small communities and help bridge the energy access gap in rural areas.

The Bujagali Hydropower Station, located on the Nile River in Uganda, was officially launched in October 2012, having been developed at the cost of approximately $900 million sourced from a combination of sources, including equity contributions from private investors and loans from international financial institutions such as the World Bank and the European Investment Bank.

The Aga Khan Fund for Economic Development (AKFED) and the Government of Uganda through the Uganda Electricity Generation Company Limited (UEGCL), are some of the other shareholders in the power station.

  • However, President Yoweri Museveni has severally criticised the project over the high cost of electricity generated by the Bujagali Power Station, saying it is detrimental to Uganda’s economic development and energy security.
  • Whether nor not TotalEnergies’ involvement will lead to lower tariffs for consumers going forward remains to be seen.

However, Terje Pilskog, the CEO of Scatec, was positive that TotalEnergies would be “a strong asset owner going forward, with the ability to further develop the projects and contribute to the energy transition in Africa.”

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